Local Government Super has awarded its first ever fixed-income ESG mandate to investment manager Pimco.
Under the mandate, Pimco will manage roughly $440 million across global credit and government bonds.
LGS chief investment officer Craig Turnbull said it was the first time LGS had awarded a specific ESG mandate in a fixed income and said it was important for its members.
“LGS recognises that the long-term prosperity of the economy and the wellbeing of members depends on a healthy environment, social cohesion and good governance of LGS and the companies in which it invests,” he said.
Mr Turnbull said that they were pleased to continue their relationship with Pimco who represents their values.
“Pimco's investment strategy perfectly complements our commitment to earning long-term sustainable returns for our members while actively managing the environmental, social and governance risks across our investment portfolio,” he said.
Head of Pimco Australia Adrian Stewart said that the company was proud to once again work for LGS and manage their funds.
“We are excited to bring what we believe is an engagement-driven, industry-leading ESG fixed income solution to the Australian marketplace with Local Government Super, a long-time client and investor.”
Mr Stewart said that the market demanded responsible investing and Pimco had responded by restricting investments in issuers who do not engage in acceptable practices and investing exclusively in highly-rated ESG stocks.
“Responsible investing has evolved, and investors have set their sights higher. It’s no longer enough just to screen out undesirable categories; investors want to foster positive social change,” he said.
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